Though it can be difficult and costly to keep customers who’ve already made the decision to switch from your competitors. However, retaining customers on your platform is a lot cheaper when compared to acquiring a new customer.
We would like to highlight that this process is crucial. Improving customer retention can be good for your business in many different ways, including increasing customer loyalty, which will lead to reductions in churn. CRR might also make it easier to use word-of-mouth marketing and increase its effectiveness of that.
But how to increase your CRR and deal with customer retention rate killer? We will find out in this article.
What Is CRR and How to Measure It?
What’s retention? This is one of the many key metrics in business that show your company’s health and profitability. It’s a term that means the percentage of loyal customers that stay with you over time.
More people are staying on your site (or using your app) for certain phrases the more is the opportunity to grow your revenue. This means improving performance metrics like ad views and clicks, which in turn leads to better customer retention.
There is a simple way to find what percentage of consumers are returning to your company after an initial purchase from you. CRR formula includes some high-level fundamental steps:
CRR = ((E-N)/S) x 100%
Where S is the clients at the beginning, N is the customers acquired during a period and E represents the end customers.
Customer Retention Rate Killer
Every year, due to businesses not being able to provide a good experience, they lose millions of potential customers.
Employees should avoid making the most common mistakes that lead to low retention rates. Below, you’ll find some of the most widespread mistakes that often affect your business’s bottom line.
1. Slow Page Loading
Your clients may switch away from you if your site/app loads slowly. While this is a problem, it can be resolved quickly by making sure your website starts up quicker and faster.
Pay attention to the loading speed of your app/website and fix the problem ASAP once you notice a delay.
Some general tips might help you fix the issue. Enable caching, optimize the image sizes and declutter your app from any unwanted codes.
2. Too Many Ads
Remember that your customer experience is the most important part. One of the downsides of spam can be the fact that it will have annoying effects on your brand. Loyal customers could get frustrated and not believe in your brand, which negatively impacts your business image.
There are a few tips you need to consider when it comes to advertising on your website or app.
First of all, there shouldn’t be too many promotions. Extra work can feel overwhelming and it’s easier to handle a situation when things are only getting busier rather than worse.
Secondly, ad placements need to take into account the target audience. It makes no sense to advertise fast food delivery on a fitness app.
3. Uncomfortable Interface
It can be hard for some people to understand online purchases. Additionally, if your customers struggle to buy stuff every time they want, they might decide to switch your company sooner or later. Complex UI is the culprit and the most common customer retention rate killer.
However, a well-designed website can encourage visitors to buy more things and push them to additional purchases.
To design your app layout aesthetically appealing and provide it with a positive user experience you need to consider a number of factors. An image, a video, written text, or typography for example. Luckily you can still maintain good branding as well.
It can seem like it’s hard to make designs that stay up-to-date and are actually attractive in your company. But they shouldn’t be hard when you make sure to align with your values and create designs that motivate people to stay on every page. Especially when you have Apporio’s expert developers working on your app development project.
4. Permanent Asking For Feedback
Feedback from customers can help companies grow, but be careful when asking for opinions. Always place surveys and forms on your app evenly to avoid making clients feel like you’re too bothering them. As asking them for feedback every time they open your app is a customer retention rate killer.
One of the ways you can improve your customer retention rate is to focus on consumers. This can be done by asking them for their insights and challenges, which can help you to provide the best possible service.
Getting success in the online business market depends on your ability to reach your customers. Offering the best possible experience is the key to retaining more customers. Taking care of the above points will help you find the customer retention rate killer for you and help you generate more revenue.